Payment in USD or Euro? Thread poster: Laura Morwood
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Laura Morwood 
United Kingdom
Local time: 22:59
Member (2008)
English to Dutch
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Hi,
I am going to work for an agancy in China and have 2 options for payment. Either a bank transfer in Euro's, which will incur a transfer fee in China and a £6.00 in the UK for receiving it. The agency will pay half of the transfer fee. Changing it into pounds will not cost anything, they just use the rate of that particular day.
Option 2 is to use paypal, but the Chinese government only allows payment in USD with this method. As far as I know, I do not pay for receiving money through PayPal and I have linked it into my bank account so I will receive it in pounds (so to speak).
I know the Euro is in a stronger positions than the dollar at the moment, but I hate having to pay the bank charges. What would be the more lucrative option in the long run?
By the way, I also have a bank account in Holland, and they don't charge anything at all for transfers. But I need the money in the UK, not in Holland!
Any advice very welcome, thanks!
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Use Paypal. After all, the dollar isn't falling THAT fast against the Euro. Have the agency convert the sum due at the date of invoice or date of payment, then there will be no more than a week between payment and receival of money. You lose less on the falling rates than you would lose on the bank transferral costs.
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Jack Qin
China
Local time: 05:59
English to Chinese
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| I usually receive payment through bank transfer | Jun 21, 2008 |
I usually receive payment through bank transfer, with the transfer fees paid by the translation agencies I work for.
To the best of my knowledge, you have to pay while transferring payment from Paypal to your bank account.
So based on that, I think bank transfer is a convenient and nicer option.
Just for you reference only.
Jack
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Laura Morwood
United Kingdom
Local time: 22:59
Member (2008)
English to Dutch
+ ...
TOPIC STARTER | Yes, you are right | Jun 21, 2008 |
Of course PayPal charges for receiving money! I checked it out on their website:
exchange rate + 2.5% charge
3.9% + £0.20 for receiving the money
That changes things a bit.
Still don't know what to do...
[Edited at 2008-06-21 10:14]
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Capesha
Local time: 23:59
Member (2006)
English to German
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| Paypal is easy but expensive | Jun 21, 2008 |
Actual example: I received 840 USD today and paid 30 USD fee with PayPal.
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Spiros Doikas
Local time: 00:59
Member (2002)
English to Greek
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| Paypal - small amounts only | Jun 21, 2008 |
For larger amounts (say over 200 USD/EUR) bank charges for wire transfer tend to be a lot less than Paypal. The best option of course is Moneybookers with the maximum 0.50 cents fee for any transaction.
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I would be asked to be paid in euros. My personal opinion is that it will conitinue to be strong indefinitely. Get used to the idea of having to pay bank charges for currency transfers - it goes with the job
Paypal is a rip-off I think
best
spencer
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Ask your Chinese client to pay through PayPal's eCheck. It only takes a little longer for being cashed, and the charge is only USD $ 5.oo (five dollars).
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| dollar forecast to rise against euro | Jun 22, 2008 |
As you say, the PayPal vs. bank transfer equation depends a great deal on the amount involved.
However, the current economic forecast is that the dollar is about bottomed out and will be rising with respect to other currencies over the next few months. So if you take the payment in dollars and can afford to let it sit in PayPal for a little while, it will (possibly) be worth more when you finally cash it out of PayPal to your bank account. (I was in the opposite situation, letting a healthy little balance of Euro payments sit in PayPal while the value of the Euro was rising w/r/t dollars, but I recently transferred them out because I expect the value of those Euros to be dropping in the upcoming months).
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| Compare the costs and do not forget exchange rates | Jun 23, 2008 |
If you are about to receive USD to PayPal and convert it to EUR or GBP before withdrawing money to your bank account / bank card, do not forget the exchange rate (I personally find PayPal's exchange rates unacceptable).
Now you simply have to compare the costs of both ways and find out which one provides you with a greater amount of money in the currency in which you will eventually spend it (let's say GBP, since you live in the UK).
Bank transfer has a fixed fee and with PayPal you will have variable costs, thus, PayPal will be a better way for smaller amounts and bank transfer of larger amounts.
If I did not need the money right away, I would also include interest I am going to get on the deposit or expected appreciation / depreciation of the foreign currency for the period (estimations are always slippery and there is always an exchange rate risk involved). I enjoy doing this but I am not sure if it is not too complicated for other peole.
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Laura Morwood
United Kingdom
Local time: 22:59
Member (2008)
English to Dutch
+ ...
TOPIC STARTER | Thanks a million $$ | Jun 23, 2008 |
Thanks to every one, all your answers have really helped me make a decision!
Laura
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Kenneth Powers
Spain
Local time: 23:59
Member (2007)
Spanish to English
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| From your keyboard to God's Ears | Jul 11, 2008 |
Kathryn Litherland wrote:
As you say, the PayPal vs. bank transfer equation depends a great deal on the amount involved.
However, the current economic forecast is that the dollar is about bottomed out and will be rising with respect to other currencies over the next few months. So if you take the payment in dollars and can afford to let it sit in PayPal for a little while, it will (possibly) be worth more when you finally cash it out of PayPal to your bank account. (I was in the opposite situation, letting a healthy little balance of Euro payments sit in PayPal while the value of the Euro was rising w/r/t dollars, but I recently transferred them out because I expect the value of those Euros to be dropping in the upcoming months).
I am sick of refusing US jobs because of the NOT almighty dollar!
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